Fund updates include a risk indicator to help you see at a glance how much the value of the fund’s assets are likely to go up or down. It’s not a guarantee of future performance and there are other risks not considered by the rating.
Find out more about having a clear understanding of your own goals and attitude to risk.
Fund updates present returns relative to a ‘market index’ that invests in assets similar to the assets the fund invests in. This is to help you assess whether the return your fund is making is reasonable.
Annual and average returns are shown. Most funds (except restricted schemes) also have a complete list of their weekly / monthly returns on the Disclose register.
Take time to review the fee information and compare it to the same information for other similar funds.
Fund updates show the total fees you are charged as a percentage of the net asset value of the fund. It will also include a breakdown of what that total fund charge is made up of, and other costs such as annual membership fees.
In this section the update will also include an example (like the one below) that shows how fees impact returns.
Example of how fees impact returnsJane had $10,000 in the fund at the start of the year and did not make any further contributions. At the end of the year, Jane received a return after fund fees were deducted of $700 (that is 7.00% of her initial $10,000). Jane also paid $60 in other charges. This gives Jane a total return after tax of $640 for the year.
Other useful information
Fund updates also include a summary of what the fund has invested in over the period. It shows:
They also provide the names of the top five directors and employees who have the most influence on investment decisions. This helps you understand who is managing your money and enables you to do your own research about them.
*The investment mix means the percentage of the fund invested in each investment type (shares, bonds, property etc)